Industrial Location Dynamics: Factors and Global Trends

Industrial Location: Factors and Global Trends

Classic Industrial Location Factors

• Proximity to raw materials and energy sources
• Proximity to the consumer market
• Abundant, cheap, and well-qualified labor
• Efficient transport system
• Industrial policy
• Entrepreneurial will
• Historical tradition
• Political and social circumstances

Historical Trend: Industrial Concentration (1855-1975)

During the period 1855-1975, industries exhibited a strong tendency towards concentration in large urban-industrial agglomerations. This resulted from several factors:

• Crowding and availability of facilities for supply and transport
• Ease of obtaining labor
• Proximity to markets
• Access to numerous services and capital equipment
• Easy access to information and innovation

This trend led to significant economies of agglomeration, particularly evident in regions such as the Cantabrian region, Catalonia, Levante, and Madrid.

Current Industrial Location Factors

The transformative changes brought by the Third Industrial Revolution have altered the significance of classical location factors, while new factors have gained prominence:

• Proximity to natural resources has lost importance due to improved and cheaper transport, which also diminishes the reliance on local markets.
• The importance of traditional industrial sectors has reduced.
• The availability of good transportation and communication systems, along with skilled manpower, remains highly relevant.

Furthermore, innovation and access to information are now essential for the competitiveness of existing industries.

Contemporary Trends: Diffusion and Concentration

Diffusion of Industry to Peripheral Areas

The dissemination of industry to peripheral areas is driven by several factors:

• Saturation of space in large cities
• Higher land costs
• Environmental concerns
• Labor disputes
• Endogenous industrialization
• New production and organizational features
• New strategies of capitalism

Mature industrial sectors are most affected by this relocation trend, as they often move to peripheral areas to reduce production costs.

Industrial Concentration in Central Spaces

Conversely, new technology sectors tend to establish themselves in central spaces. The current situation is therefore complex, characterized by both the strengthening of the attractiveness of established industrial sites and increased forces pushing industries from these central areas towards their peripheries.